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The evolving world of power Opportunities and challenges

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Concern for the environment is now high on the global agenda and governments around the world are mobilizing resources to fight climate change. a combination of energy efficiency measures and renewable power generation could deliver 75 percent of the required emissions reduction over the next two decades. social and environmental cost. Approximately 80 percent of energy is lost in the chain from primary harvesting of resources such as oil and gas.1 That’s more than twice the amount used in 2000. which began during the industrial revolution. offices and factories. There is mounting evidence that the rise in global temperatures. While increasing demand for power is a reality. 2009. global electricity consumption will be close to 30.Balancing the need for power with minimum environmental impact Global demand for energy is rising fast.000 terawatt hours a year. climate change is also a serious cause for concern. is due in significant part to man’s activities. Unless changes are made. World Energy Outlook. by 2030. 1 International Energy Agency. to end-use in our homes. and demand for electricity is rising even faster. Meeting this kind of demand would mean building a one gigawatt power plant and its associated grid infrastructure every week for the next 20 years. Improving the efficiency of this energy chain remains the most cost-effective way of lowering consumption and emissions. It is now widely accepted that global temperatures must be limited to a maximum of 2°C above preindustrial levels if the effects of climate change are to be held to an acceptable economic. The evolving world of power 3 . According to the International Energy Agency (IEA). greenhouse gas emissions must be dramatically reduced. To achieve this goal.

4 28.5 40. can reduce losses at each step in the energy value chain by 20-30 percent. can reduce losses at each step in the energy value chain by 20-30 percent. wind and solar. we can reduce environmental impact and costs. lowering global emissions of greenhouse gases and other pollutants. based on existing technologies.4 20. Industry consumes over 40 percent of the world’s electricity. managing distribution networks more intelligently and using electricity more productively.8 34. ABB solutions. Clearly. the power sector could play a major role in efforts to reduce greenhouse gas emissions by facilitating improvements in energy efficiency and integrating renewables. Major reductions in carbon emissions can come from the development of renewable energy sources such as hydro. World Energy Outlook 2009.9 +76% Energy-related CO 2 emissions 45 Gigatons (Gt) 40 35 30 25 20 15 10 5 0 2007 2015 2030 28. Source: International Energy Agency. substations Process control Energy management Smart buildings Energy savings are available across all of ABB’s market segments 4 The evolving world of power . and make better use of renewable energy sources.World electricity demand Terrawatt hours (TWh) 40 35 30 25 20 15 10 5 0 2007 2015 2030 16.2 +40% ABB solutions. based on existing technologies. substation efficiency Improved productivity Building management Home automation 20-30% improvement Process control Marine Power plant automation Grid systems. Energy losses can be reduced by 20-30% using ABB solutions Primary energy Transport Generation T&D Industry Commercial Residential Standard losses Reduced losses Available energy Improved well efficiency Efficient vessels More efficient fuel combustion Low line losses. The same benefits can come from reducing transmission losses. and more than 40 percent of global carbon dioxide emissions are produced by fossil-fueled power generation. These sources will reduce our long-term dependence on fossil fuels. If we can generate power more efficiently.

The power sector will play a major role in efforts to reduce greenhouse gas emissions by integrating renewables Opportunities and challenges 5 .

6 The evolving world of power . will need to feed into electricity grids.000 12. Since electricity networks have evolved over the decades to transport electricity from predictable and controllable generation sources. Renewable energy sources are expected to make a major contribution Global electricity production (TWh/y) 20.While the cost of renewable energy is generally higher than that of conventional alternatives.000 8. and accommodate an increasing share of small-scale and distributed generation sources at the same time.000 Nuclear 14.000 Gas Coal 10. Waste Solar CSP Solar PV Renewables (IEA Blue Map Scenario)1 Other Wind Hydro 1990 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 1 Blue Map Scenario is a combination of high efficiency. economies of scale and advances in technology are bringing prices down and making the environmental benefits ever more attractive.000 2. electric vehicles and hydrogen fuel cells.000 4.000 Hydro 18. The grids must be able to manage their unpredictable and intermittent nature. though not insurmountable challenges and the grid will need to evolve.000 16. biofuels.000 Oil 0 Tidal Geothermal Biomass. the result is that CO2 emissions in 2050 are contained at half the level of 2005.000 6. But renewable power sources. which are close to centers of demand. Source: International Energy Agency. which are often located far from centers of demand and may be subject to the vagaries of the weather. the increase of renewables will bring a set of new.

enhancing capacity and improving reliability. This convergence will deliver the sophisticated automation systems needed to support the many growing complexities. Source: International Energy Agency. The power system of the future will be more flexible and interconnected. In the past. To ensure a balance between supply and demand. 2050 compared to 2007. which will accommodate remote renewables and facilitate efficient energy trading. consumption will also need to be controlled. utilities and consumers. Across the world. The advent of electric vehicles will also have an impact on the development of the future grid – key aspects that need to be addressed are the charging and energy storage infrastructure. which include faster fault detection and resolution. and elsewhere. demand management will require the active involvement of power generators. but in the future. whole new systems will be needed to serve consumers as living standards rise. balancing our growing need for power with environmental concerns. helping to meet shortfalls in neighboring systems. we remain committed to the development and deployment of technologies to help our customers to be more competitive by increasing efficiency. power systems need to become more effective and efficient. But the introduction of information and communications technologies to our grids has increased the need for cyber security. Energy and renewables could deliver bulk of CO2 savings 45 40 57% 35 30 25 20 2005 2010 2015 2020 2025 2030 20% 10% 10% Energy efficiency Renewables Biofuels (3%) Nuclear CCS* *carbon capture and storage Reference scenario 450 policy scenario1 1 Energy-related CO2 emissions reduced by 50%.Annual emission of CO2 in gigatonnes In many regions. while maintaining the required levels of grid reliability in the coming decades. There will also be more focus on ensuring power quality and reliability to avoid power fluctuations and failures. and billing systems. through increased automation and greater deployment of energy efficiency technologies to ensure we make the best possible use of our infrastructure and our resources. Alongside the benefits these technologies bring. the utility management and control systems of the past were inherently difficult to compromise and a “security by obscurity” approach prevailed. which strengthens the link between software systems used to control the network and the physical infrastructure of the grid. grid expansion and renovation will be required to ensure the reliability. additional control systems are required to ensure that the grid’s systems will function correctly. to address the challenges and opportunities of balancing our growing need for power with environmental concerns. efficiency and security of electricity supplies. Stability will be enhanced by enabling generators to share power during periods of low demand. while lowering environmental impact. By their nature. Opportunities and challenges 7 . as more renewable power is incorporated into the system. At ABB. without interruption by external influences. Another key development in the management of the evolving power network is the convergence of information (IT) and operational (OT) technologies. electricity supplies simply followed demand patterns. The power system of the future will be more flexible and interconnected. leading to the evolution of a stronger and smarter grid. The evolving power system will have more long-distance transmission links and more grid interconnections. World Energy Outlook 2009. more automated and intelligent.

intelligent Energizing and controlling power plants Power plant operators aim to run their installations at the highest possible level of efficiency. With more than 125 years of experience and a vast installed base. Our ultrahigh and high-voltage solutions up to 1000 kV. ABB offers technologies for complete electrical and automation solutions as well as controls and instrumentation products for power generation plants of all kinds.ABB techologies enable the flow and control be more flexible. reliable. underground and even underwater. Power transmission ABB is a pioneer and market leader in technologies for efficient and reliable transmission of power over long distances with minimal losses. help transport power and connect transmission grids over land. including technologies like HVDC. circuit breakers. 8 The evolving world of power . These include surge arrestors. Specialist automation systems protect and optimize the flow of power within a substation. efficient.and medium-voltage products that ensure reliability and efficiency in the power system. and transformers. regardless of the energy source. Substations Transmission and distribution substations use a range of high. switchgear. FACTS and cable systems. protection equipment. HVDC Light.

of electricity for power networks to and environmentally friendly Managing the network Network management software products and systems collect. distribution and traction transformers as well as a complete range of medium voltage products . store and analyze data from thousands of points in a network. switchgear. from consulting. improving energy efficiency and lowering environmental impact. transmission and distribution systems. repair and refurbishment to complete maintenance and asset management solutions. Opportunities and challenges 9 title 9 ABB Group profile | chapter . ABB’s global installed base coupled with its vast portfolio facilitates life cycle support across the power value chain. Systems like network solutions. capacitors. SCADA (supervisory control and data acquisition) and utility communications enable real-time monitoring and control of power generation. Services With unparalleled domain expertise. Products ABB’s product offering across voltage levels includes circuit breakers. ABB’s offering encompasses the entire range of services. instrument transformers.enhancing reliability. power. as well as industry and rail networks.

With an extensive offering portfolio that includes electrical balance of plant.ABB’s offering across the power value chain Energizing and controlling power plants More than 50 percent of the total investment in power infrastructure goes to the generation sector as we continue to add capacity. ABB pioneered HVDC (high-voltage direct current) technology more than 50 years ago and has supplied more than half of the world’s installed HVDC capacity. enhance efficiency and minimize environmental impact through the entire lifecycle of the plant. especially in the emerging economies. and is able to stabilize intermittent power supplies that might otherwise disrupt the grid. systems and service solutions that help optimize performance. ABB is a leading provider of integrated power and automation solutions for all types of power generation plants. automation. instrumentation and control systems we offer products. It has lower losses and a smaller footprint than traditional high-voltage alternating current (HVAC) transmission systems. the renewables sector is growing and will play an important role in the global transition to a low-carbon economy. HVDC is also widely used for grid interconnections. Power transmission ABB has a comprehensive offering of alternating and direct current transmission systems. which help customers to reduce transmission losses. HVDC technology is designed for high-efficiency power transmission via overhead transmission lines and underground or submarine cables. Although power generation around the world will continue to depend heavily on coal and other fossil fuels for the foreseeable future. it is the technology of choice for longdistance transmission projects. improve reliability. 10 The evolving world of power . maximize efficiency and improve grid reliability. which can deliver electricity from remote generation sources to consumption centers. For these reasons.

When it comes to transmission grid solutions. ABB Group profile | chapter title 11 Opportunities and challenges . reducing the time. The environmental benefits of HVDC Light ®. is ideal for linking offshore installations. FACTS solutions can alleviate the need for capital investment. while ensuring robust performance and minimal electrical losses. accessories and services for a range of applications from medium.000 km of XLPE cables for voltages in excess of 100 kV for projects around the world. FACTS technologies also boost transmission efficiency. oil-free cables and compact converter stations. FACTS technologies help to deliver more power to consumers.by as much as 50 percent . ABB has delivered more than 7. include neutral electromagnetic fields. FACTS (flexible alternating current systems) technologies improve power quality and can significantly increase the capacity of alternating current transmission lines . improving services and revenues. The portfolio includes high-performance XLPE (cross-linked polyethylene) insulated cables for high efficiency transmission systems at voltages up to 500 kV. ABB is a global leader in FACTS technologies and has more than 700 installations in operation or under construction around the world. By enhancing the capacity of existing transmission infrastructure.to high-voltage AC and DC systems.while maintaining or improving the system’s reliability. cost and environmental impact associated with the construction of new generating facilities and transmission lines. By improving efficiency. relieve bottlenecks and can be used for the safe integration of unpredictable power sources such as wind and solar into the grid. ABB has a unique in-house manufacturing capability that includes semiconductors. such as wind farms or oil and gas platforms.HVDC Light®. cables and complete converter stations. reducing waste. ABB also offers a comprehensive range of land and submarine cables. to mainland grids. a system based on ABB’s classic HVDC technology. It is used to overcome limitations of distance and grid incompatibility.

control. district heating. The standard also facilitates multivendor integration and substation extensions. transmission grids. operate and protect power systems. ABB’s offering includes control and protection systems for power generation. feeding power from generating stations into the grid and providing the link between transmission and distribution networks as well as end consumers.Substations Substations are key installations in the power grid that facilitate the efficient transmission and distribution of electricity. ABB’s offering is compliant with IEC 61850. ABB has a unique portfolio comprising an end-to-end software offering in addition to a comprehensive range of operational technologies . gas and water). ABB’s substation offering covers a range of voltage levels. efficiency. as well as software solutions for central electricity markets and mixed utilities (electricity.a valuable combination for the development of smart grids. reliability and safety of ABB’s substations. from deserts and mountains to offshore rigs and crowded city centers. ABB has successfully delivered projects in all kinds of environments. reliability and power quality. This provides real-time control and monitoring functions and helps to maximize the availability. distribution networks. Network management systems are a key smart-grid component enabling highly automated power systems to incorporate and manage centralized and distributed power generation. As the world’s leading supplier of air-. 12 The evolving world of power . They perform the vital function of monitoring and controlling power flows. intermittent sources of renewable energy. ABB products. transmission.and hybrid insulated substations. Managing the network ABB’s network management and utility communications solutions monitor. systems and service solutions facilitate the generation. as well as enterprisewide data integration for efficient power system management. and energy trading markets. realtime pricing and load-management data. distribution and utilization of electricity – enabling efficiency. They ensure the reliability of electricity supplies and enable real-time management of power plants.100 kV. transmission and distribution. gas. which provides a common framework for substation automation and facilitates interoperability across devices and systems. With the recent addition of Ventyx. up to 1. the open communication standard.

and hybrid-insulated switchgear solutions. power quality and efficiency in the distribution network.100 kV. efficiency and quality of power supplies with minimum environmental impact and enable the safe transmission of power at high voltage levels. modular systems and equipment for distribution automation. The products are built to withstand the rigors of the most demanding environments. ABB’s medium voltage portfolio includes switchgear. ABB’s medium-voltage technologies play an important role in maintaining stability. These products enhance the reliability. to extend the life of existing equipment and improve performance. live. instrument transformers. ABB high-voltage products are supported with a full-range service portfolio.and dead-tank circuit breakers. power capacitors and surge arresters. The products serve new project installations and retrofit or upgrades.Products ABB offers a spectrum of high-voltage products at ratings up to 1. gas. Opportunities and challenges 13 . from offshore and industrial facilities to urban and rural locations. This includes air-. Products are also available for OEMs (original equipment manufacturers) to incorporate into their own installations. all supported by a global service network.

performance optimization and routine maintenance. installation and commissioning. reliability and durability. ABB produces over 2. through transmission and distribution systems and substations. With 30 service centers. ABB pioneered the development of commercial transformers in the late 19th century and has continuously improved its transformer technology in terms of efficiency. As the world’s leading manufacturer of transformers.000 power transformers and 500. 14 The evolving world of power .Transformers are an integral component of the power value chain. Services ABB’s service portfolio includes design and consulting. and a range of environmentally friendly products including high-efficiency amorphous core transformers and transformers using biodegradable vegetable oil. from power plants.000 meters). It addition to setting new records in terms of power ratings. to end-user applications. and ultra low-sound transformers for noise-sensitive environments. as well as refurbishments and upgrades. the world’s most efficient subsea transformer (which can operate at depths of up to 3.000 distribution transformers every year. ABB has also developed high-efficiency distribution transformers that can reduce energy losses up to 70 percent. ABB’s transformer technology achievements include the world’s first 800 kV DC bushings. ABB is also the world’s leading transformer service provider.

mainly carbon-based and controllable power generation to more distributed. ABB offers a vast portfolio of power and automation technologies and remains committed to helping customers to do more with less. the ability to manage demand patterns and balance supply with demand is improving as the power system adapts to a multi-directional energy and communication flow. Opportunities and challenges 15 . This transition brings challenges in terms of renewable integration. Conversely. The power sector is currently witnessing the most significant changes in recent history. reliability. Monitoring systems are becoming more sophisticated and able to handle complex functions. transmission and distribution through to end use. the United States. reliable and smarter grids. ABB technologies are addressing the challenge of balancing rising demand for power with increasing concern for the environment. through sustainable business practices and environmentally sensitive products. With a 125 year heritage of technology and innovation and a presence in over 100 countries. we have corporate research centers in different parts of the world. and power quality. With a 125 year heritage of technology and innovation and a presence in over 100 countries. delivering power and productivity for a better world. The use of information technology to improve the intelligence of power systems is increasing. ABB products. In order to maintain our industry-focused expertise and understanding of customer needs. systems and service solutions cover the entire value chain from generation. From harnessing and integrating renewables. planning and enabling demand management to preparing the grid for electric vehicles. less predictable and less controllable elements that include a larger portion of low-carbon energy sources. This evolution will bring flexibility. ABB continues to shape the grid of the future. more intelligence and the ability to manage power networks effectively. efficiency. ABB technologies are playing a central role in the optimization of electricity generation and the evolution of more flexible. delivering power and productivity for a better world. India and China.The evolving world of power Delivering power and productivity for a better world ABB constantly strives to enhance efficiency by optimizing power generation and providing reliable power transmission and distribution. ABB continues to shape the grid of the future. Our engineers and developers are working to maintain a constant flow of ideas and improvements that will enable us to meet the needs of today and tomorrow. to software solutions for energy forecasting. reliability. We are moving from a centralized. in Europe. delivering power more efficiently and with lower environmental impact.

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